Chartered takeover stabilizes Saxon chip industry, expert says

MUNICH, Germany  The planned takeover of Chartered Semiconductor by the ATIC investment group and the subsequent merger with Globalfoundries is "a stroke of luck" for Globalfoundries, says industry consultant Harald Eggers. However, the integration of the two companies could prove to be a challenge.

Industry veteran Eggers, a former Infineon manager and now one of the mastermind of the Saxon startup scene, said the takeover of Chartered could provide essential technological elements to Globalfoundries  essential in the sense that without these elements Globalfoundries would not be able to compete on a global scale in the foundry industry. "In order to be competitive, a foundry needs to be able to offer a broad variety of processes, interfaces and libraries," Eggers said. "This is something that has not been available at Globalfoundries, given its background as a purely high-end processor manufacturing entity."

The unknown factor in the Chartered-Globalfoundries-ATIC equation could be the merger of the two companies with their different culture. "There are cultural and mental differences and other unknown factors," he said. "I don't know if the integration of the two will run smoothly, but this will be an essential factor." He added that there are a number of questions to be answered, for instance where the headquarters of the combined company will be located and if ATIC plans to maintain one or two headquarters. "It boils down to the question if there will be emotional winners and losers in the process," Eggers said.

For the Saxon silicon region, the planned Chartered Semiconductor takeover is good news. "It will stabilize the semiconductor industry after the Qimonda breakdown", he said.